Saudi Arabia on Sunday officially announced the launch of its new airline Riyadh Air, as a part of the plan which will turn Riyadh into a global aviation hub to compete against regional transport and travel hubs in Dubai and Doha. Saudi Arabias Crown Prince Mohammed bin Salman formally announced the launch of its upcoming national airline. Riyadh Air will be chaired by Yasir Al-Rumayyan of PIF and Tony Douglas, who brings more than 40 years of experience in the aviation and logistics industries, appointed as Chief Executive Officer.The new airline aims to leverage Saudi Arabias strategic geographical location between Asia, Africa and Europe. The airline aims to reach and serve 100 destinations by 2030. The upcoming airline is anticipated to bring USD 20 billion and more than 200,000 jobs, both directly and indirectly, to Saudi Arabias non-oil GDP development. The monarchy is attempting to diversify its economy and lessen its reliance on oil with this move. Saudi Arabias Public Investment Fund (PIF), a sovereign wealth fund with more than USD 600 billion in assets, is the sole owner of Riyadh Air.After the official announcement, country has marked the entry to the highly competitive aviation industry. Going ahead company will face the tough competition with its regional giants like Emirates, Qatar Airways and Turkish Airlines. The gulf kingdom is pursuing its ambitious goal under wide ranging Vision 2030 in which the company is planning to triple the annual traffic to 330 million passengers. And also, aiming to reach five million tonnes of cargo each year.The plan for the new airport in the capital Riyadh was disclosed in November last year, stretching in over 57 square kilometres, that is set to accommodate 120 million travellers per year by 2030 and by 2050 they planning to reach at 185 million travellers. The Riyadh airport runs with the capacity of 35 million travellers currently.The new airline is the latest in “a huge package of projects” that will “consolidate our countrys position as an international hub for aviation and a global logistics centre”, Saudi transport minister Saleh Al-Jasser said on Twitter.The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, which manages more than USD 600 billion in assets and is the driving force behind the countrys efforts to diversify its economy and wean itself off oil, is the sole owner of Riyadh Air. In October, Saudi Arabia was in advanced talks with Airbus to purchase over 40 A350 aircraft, while Boeing was also struggle for a piece of the kingdoms growing transportation market.The head of state owned Saudi Arabian Airlines (Saudia), said that it was already in talk with Airbus and Boeing on order of both for itself and newly airline also. Reportedly, the deal with Boeing jets will be closed at the order value of USD 35 billion. The airline is already in talks with Boeing and Airbus for 80 jets.Reportedly the countrys busiest airport is currently in the Red Sea coastal city of Jeddah, where flag carrier Saudia is based. It is also known as the gateway to Mecca, a city that welcomes millions of people to hajj every year.Riyadh Air, in an official statement said that they would acquire the best aircrafts “modern aircraft equipped with the latest technology and will adopt world class sustainability and safety practices”. It is going to be a world class airline. The airline would make it possible for visitors from all over the world to enjoy Saudi Arabias cultural and natural features. Through expanding air travel alternatives, enhancing cargo capacity, and ultimately increasing international passenger traffic, Riyadh Air will also act as a catalyst for the Saudi National Transport and Logistics Strategy and the National Tourism Strategy.
